If you’ve ever been confused about how disbursements (rental payments into your account) work or what your managing agent’s procedure is around rent arrears than you’re not alone. We’ve put together an easy to read guide for you so you can stress less about your payments and get back to the things you enjoy.
what are disbursements and when do they occur?
A disbursement is a payment into your account from the agency’s trust account. The payment is any money your tenants have paid over a certain period, minus outgoings.
Our clients enjoy disbursements on a fortnightly basis meaning any monies that have been paid and cleared by the tenants over this period is transferred to you.
how often will I receive a statement?
Statements are issued monthly on the first business day of the month.
Any transactions that have taken place for your property since the last statement are itemised and any invoices that have been paid are attached.
tenant rent payments and rent arrears management
Tenants are permitted to pay their rent however frequently they like as long as their rent doesn’t fall behind. Most tenants will pay their rent weekly or fortnightly and some may pay their rent monthly although this isn’t common.
Under Queensland legislation, there is no requirement for tenants to keep their rent paid ‘in advance’ and this condition cannot be written into the lease agreement. Should your tenant’s rent ever fall behind, we have a strict and proactive procedure that is followed every time.
2-6 full days in arrears
We will contact the tenant via text messages, phone calls and emails each day during this period. We take this approach in the early stages to hopefully talk with them about their situation and reach a solution before it gets worse.
7 full days in arrears
At this stage, we are permitted to take the first legal step which is to issue a Notice to Remedy Breach (RTA Form 11). This form gives the tenants 7 full days to pay the outstanding rent monies and bring their rent back up to date. After this is issued, we still attempt to keep in constant contact with the tenant to make sure they are aware of their obligations and try to assist them with getting back on track.
Once the breach expires
If the tenants haven’t remedied the breach after it has expired, the next step is to issue them with a Notice to Leave (RTA Form 12). Once this notice is issued, we’ll be in contact with you to discuss the process of eviction and finding new tenants for your property. We will always try to keep communication open with the tenant to try to prevent it from getting to this point. During the whole process, we also communicate with you regularly and provide you with updates, so you always know what’s going on.